Impact of the Ecosystem On Organisations & Strategy

Question 1

What is the context of change in strategy?

Answer 1

Changes in the external environment that affect how businesses operate and compete

Question 2

What frameworks help analyse the external environment?

Answer 2

PESTEL & Porter’s Five Forces

Question 3

What are some common external drivers of change?

Answer 3

Globalisation, Geopolitics, Demographic shifts, Customer empowerment, Digital technology, Automation, Sustainability

Question 4

What is customer empowerment?

Answer 4

Customers now have more information, voice, and choice - they expect ethical, responsive and transparent businesses.

Question 5

What is the strategic impact of digital technology?

Answer 5

It enables faster operations, new business models, and real time customer interaction

EX: Netflix disrupting TV via streaming

Question 6

What is the impact of sustainability on business strategy?

Answer 6

Firms must align with environmental standards or risk losing reputation, customers, or facing penalties

Question 7

What is the impact of gloablisation?

Answer 7

Easier access to global markets, but more competition and geopolitical risk

Question 8

What is a business ecosystem?

Answer 8

A group of connected organisations (eg: suppliers, partners, customers) that work together to create value

Question 9

What’s the difference between a business ecosystem and a supply chain?

Answer 9

Ecosystems are more flexible and collaborative
Supply chains are linear and controlled

Question 10

3 key features of business ecosysetms?

Answer 10

Connectedness, interdependence, collaboration

Question 11

What does ‘connectedness’ mean in business ecosystem?

Answer 11

All members share data, systems, or services - like Apple syncing iPhone, iCloud & AirPods

Question 12

What does ‘interdependence’ mean in ecosystems?

Answer 12

Each members success depends on others - e.g. Amazon depends on third-party sellers and cloud providers

Question 13

What does ‘collaboration’ mean in ecosystems?

Answer 13

Partners work together to deliver more value than they could alone - e.g. Spotify & artists

Question 14

What are the 4 roles in ecosystems?

Answer 14

Platform providers
Process providers
Asset providers
Experience providers

Question 15

What is a platform provider?

Answer 15

They create the digital or physical base that connects others
E.g: Apple’s iOS or Amazon Marketplace

Question 16

What is a process provider?

Answer 16

They handle operations like delivery, payments, or logistics
E.g: PayPal or Uber Eats’ delivery system

Question 17

What is an asset provider?

Answer 17

They contribute physical or digital assets
E.g: A hotel on Airbnb or driver/car on Uber

Question 18

What is an experience provider?

Answer 18

They interact directly with the customer to deliver the final service
E.g: Uber driver or AirBnB host

Question 19

Why is it important to understand your ecosystem role?

Answer 19

It shapes your strategy - whether you lead, support, or depend on others

Question 20

Which role usually holds the most power in ecosystems?

Answer 20

Platform providers - they control access, data and standards

Question 21

What are participants in an ecosystem?

Answer 21

Individuals or organisations that contribute to and benefit from value creation

Question 22

What is meant by ‘ROLE’ in participant structure?

Answer 22

What they do - e.g. provider, user, partner, regulator

Question 23

What is meant by ‘REACH’?

Answer 23

How widely a participant can influence others - e.g. global reach vs. local partner

Question 24

What is meant by ‘CAPABILITY’?

Answer 24

The skills, resources or technologies a participant brings to the ecosystem

Question 25

What 3 things define interactions in ecosystems?

Answer 25

Rules - how they work Connections - who they work with Course - the flow of interaction

Question 26

Why are clear rules important in an ecosystem?

Answer 26

To ensure fair play, trust, and smooth coordination

Question 27

What is mutuality?

Answer 27

Shared goals and coordination between participants to create joint value

Question 28

What is orchestration in an ecosystem?

Answer 28

Coordinating different players so they ecosystem works smoothly and adds value

Question 29

Who is the orchestration in an ecosystem?

Answer 29

The firm that sets standards, manages relationships, and ensures all parts align E.G. Apple controlling app design rules on its platform

Question 30

What happens when orchestration is weak?

Answer 30

Conflicts, inefficiencies, or loss of trust among ecosystem members

Question 31

Why is orchestration strategic?

Answer 31

It gives control over value flow and power over participants

Question 32

Application: How should anew firm position itself in an ecosystem?

Answer 32

Understand its role, build capability, and align the orchestrators rules

Question 33

How is the value created in traditional models?

Answer 33

In a linear way: SUPPLIER > COMPANY > CUSTOMER

Question 34

How is the value created in ecosystems?

Answer 34

Collaboratively and in loops - everyone contributes and gains

Question 35

What are the 4 orchestration models in ecosystems?

Answer 35

Lions Pride, Wolf Pack, Hornet's Nest, Spider's Web

Question 36

What is the Lion's Pride model?

Answer 36

Shared leadership and collaboration - seen in open source or alliances

Question 37

What is the Spider's Web model?

Answer 37

One dominant firm controls everything - like Apple

Question 38

What is the Hornet's Nest model?

Answer 38

Chaotic structure, no clear leader, fast-moving (e.g. crypto start ups)

Question 39

What is the Wolf's Pack model?

Answer 39

A structure where several strong participants cooperate, but one firm may loosely guide or influence the group without dominating it App: Think of the automotive industry - BMW / Toyota rely on strong suppliers and tech firms but don't fully control them like Apple controls the ecosystem